LUKOIL Group has proved hydrocarbon reserves in six countries. The majority of the proved reserves is conventional, providing the Company a significant competitive advantage that ensures lower development and production costs per barrel.
As of the end of 2019, the Company’s reserves life was 18 years in comparison with the average of 12 years among the world’s largest international oil companies. LUKOIL is one of the leading international and Russian companies in terms of proved reserves life.
Concentrated mainly in West Siberia, 90% of the Group's proved hydrocarbon reserves are located in Russia. Offshore fields and high-viscosity oil account for approximately 13% of the proved reserves. Almost half of LUKOIL's international proved reserves are in Uzbekistan, where the Company actively develops its gas projects.
61% of the Company's proved hydrocarbon reserves have been classified as developed, in that they can be extracted from existing wells using currently available technologies and equipment.
At the end of 2019, the Group held 539 licenses in Russia, with 90% of them granting hydrocarbon exploration and production rights. The average remaining validity of these licenses was 30 years.
The remaining 10% of the Company's licenses grant the right to prospect, explore, and appraise hydrocarbon deposits, with an average remaining validity of about three years.